Christian Credit Counselors Blog

Debt Counseling Increases Take-Home Pay

When you pay more money than you have to in interest on your credit card debt, you have less money each month. By consolidating debt with a debt management plan, your take-home pay increases. By making the move to receive debt counseling, you can also develop a budget that lets you keep more of your paycheck. A recent article by nerdwallet.com, there are several strategies you can employ to increase your take home pay. Before making any changes regarding taxes, consult with your tax adviser first. As far as budgeting and consolidating debt, rely on a trained and certified credit counselor.

Increasing tax exemptions

One way you can end up with a higher paycheck every month is by increasing your tax exemptions. In most cases, you have to fill out a new W-4 form. Your employer may allow you to use an online version with electronic signature. Again, check with your tax adviser before changing your tax withholding. The higher the number of tax exemptions, the less money gets withheld from your paycheck for federal taxes. You will not get as much money back in the form of a tax refund if you increase your exemptions, but you’ll get more money now.

Consolidating your debt

When you consolidate debt through a reputable agency such as Christian Credit Counselors, you pay back what you owe. Your credit counselor will help you score a lower interest rate on your credit card debt. Instead of paying several creditors, you only make one consolidated or merged debt payment. With debt counseling, you learn how easy it is to reduce your credit card debt.

Working overtime or two jobs

Another way to increase income is by working two jobs, asking for overtime or finding a side gig as a freelancer or independent contractor. Before you claim overtime, check with your supervisor or boss to make sure you have approval. Some companies insist their employees stop working after they work 40 hours because they don’t want to pay time and a half compensation. In those cases, you can find other ways to earn income on your days off.

Tracking your spending

When it comes to building wealth, it’s not just about earning more but about keeping more of the money you do make. Whether you “lose” money by paying a high interest rate on a credit card or by spending too much money on things you don’t need, it pays to build a budget. With debt counseling, you receive all the tips you need to create a monthly budget that works. You can set financial goals, track spending, evaluate your progress and stay accountable.

At Christian Credit Counselors, we make it our mission to help our clients get out of debt and stay out of debt. Ask us about how debt counseling will give you the tools you need so you keep more of your take-home pay. Whether your money ends up in savings, a Roth IRA, 401(k) or in your home’s equity, keeping your take-home pay means building wealth.

Do you want to know more about debt and how you can make smart financial decisions now that will help you secure a more prosperous financial future? Sign up for our newsletter for monthly money tips.